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UNIVERSAL INTERNATIONAL ANNOUNCES THIRD QUARTER LOSS AND MODIFICATION TO BANKING AGREEMENTS

 UNIVERSAL INTERNATIONAL ANNOUNCES THIRD QUARTER LOSS
 AND MODIFICATION TO BANKING AGREEMENTS
 MINNEAPOLIS, Nov. 3 /PRNewswire/ -- Universal International, Inc. (NASDAQ-NMS: UNIV) today announced financial results for its third quarter ended Sept. 30, 1992. The company reported revenues of $14,677,099 for the quarter, with a net loss of $900,520 or $.18 per share. This compares with revenues of $15,604,203 and net income of $568,555 or $.14 per share in the third quarter of 1991. For the nine months ended Sept. 30, 1992, Universal had revenues of $46,335,550, with a net loss of $1,397,627 or $.29 per share. In the first nine months of 1991, the company had revenues of $45,295,305, with net income of $1,595,483 or $.45 per share. The primary reasons for the increased loss during the third quarter as compared to the second quarter were below plan revenues and gross margins for wholesale business and pre- opening expenses associated with new retail stores. Pre-opening expenses for new stores are being expensed as incurred.
 The company also announced that it has finalized a modification of its revolving line of credit with its banks. The principal changes were the removal of the earnings covenant from the loan agreement and the inclusion of Firstar Financial Services in the lending group.
 Mark Ravich, chief executive officer, commented: "We are disappointed with the size of our loss during the third quarter. We believe these losses are largely due to the impact of the continued economic recession on our wholesale customer base and the ongoing costs associated with the start-up of our Only Deals retail business. Our goals for the next six months will be to gradually reduce wholesale inventory levels, which grew as a result of below plan sales, increase our overall corporate operating performance and refine the Only Deals retail business. Part of this refinement will be the implementation of point of sale data collection at each of our retail outlets over the next six months.
 "Our retail business continued to open stores and as of Oct. 30, 1992 we had 20 stores open. Our goal is to have between 23 and 25 stores open by Dec. 31, 1992 in Minnesota, Wisconsin, Illinois, Iowa, Nebraska and South Dakota. In addition, we are very excited to have Gilbert Wachsman on board as president of Only Deals to further develop our retail business and to help manage our wholesale business going forward."
 Universal International, Inc. buys and sells quality "close-out" merchandise in its wholesale business and is developing a chain of Only Deals retail stores that offer merchandise priced from $1 to $10. Universal's shares are traded on the NASDAQ National Market System under the symbol UNIV.
 UNIVERSAL INTERNATIONAL, INC.
 Selected Consolidated Condensed Statement of Operations
 and Consolidated Balance Sheet Information
 (In thousands, except per share data)
 Three Months Ended Nine Months Ended
 9/30/92 9/30/91 9/30/92 9/30/91
 Revenues $14,677 $15,604 $46,336 $45,295
 Gross margin 2,191 3,324 8,169 8,952
 Net income (loss) $(901) $569 $(1,398) $1,595
 Earnings (loss) per share $(.18) $.14 $(.29) $.45
 Weighted average shares
 outstanding 4,893 3,984 4,798 3,568
 9/30/92 9/30/91
 Working capital $22,232 $14,605
 Total assets 42,349 28,767
 Shareholders' equity 26,370 15,520
 -0- 11/3/92
 /CONTACT: Mark Bartholomay of Universal International, 612-533-1169/
 (UNIV) CO: Universal International, Inc. ST: Minnesota IN: REA SU: ERN


AL -- MN012 -- 2201 11/03/92 16:51 EST
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Date:Nov 3, 1992
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